Pause slide – right clickResume slide – left click Previous slide - Left arrow belowNext slide - Right arrow below Close – escape key Investment Update September 2014 with Tim Farrelly CEO - Farrelly’s Asset allocation consultants to Australian Unity Personal Financial Services Pause slide – right clickResume slide – left click Previous slide - Left arrow belowNext slide - Right arrow below Close – escape key

Pause slide – right clickResume slide – left click Previous slide - Left arrow belowNext slide - Right arrow below Close – escape key Market outlook Economy and interest rates Australian shares International shares Investing in cash and fixed interest

Pause slide – right clickResume slide – left click Previous slide - Left arrow belowNext slide - Right arrow below Close – escape key Shares attractive despite a struggling economy

Pause slide – right clickResume slide – left click Previous slide - Left arrow belowNext slide - Right arrow below Close – escape key Bringing the budget back into surplus will put a handbrake on growth

Pause slide – right clickResume slide – left click Previous slide - Left arrow belowNext slide - Right arrow below Close – escape key Some positives from slow growth Inflation to stay low An early return to more normal interest rates is unlikely Both are supportive for equity markets

Pause slide – right clickResume slide – left click Previous slide - Left arrow belowNext slide - Right arrow below Close – escape key Australian shares grind higher but still fair value Source: Yahoo Finance

Pause slide – right clickResume slide – left click Previous slide - Left arrow belowNext slide - Right arrow below Close – escape key Australian shares should outperform Term Deposits Source: farrelly’s Growth 4.0% p.a. 9.8% p.a. Forecast return over next decade (% p.a.)

Pause slide – right clickResume slide – left click Previous slide - Left arrow belowNext slide - Right arrow below Close – escape key Banks not worth a big overweight No longer very cheap Yields great but low growth ahead

Pause slide – right clickResume slide – left click Previous slide - Left arrow belowNext slide - Right arrow below Close – escape key Reduce banks exposures to no more than 30% Unlikely to outperform the rest of the market Large exposure to banks no longer prudent Prefer mid size companies

Pause slide – right clickResume slide – left click Previous slide - Left arrow belowNext slide - Right arrow below Close – escape key International equities attractive – except the US Source: farrelly’s estimates MarketForecast long term return US5.5% Europe (ex UK)10.0% UK10.0% Japan8.8% Emerging markets9.4% Asia Pacific (ex Japan)10.1%

Pause slide – right clickResume slide – left click Previous slide - Left arrow belowNext slide - Right arrow below Close – escape key Banks still paying a premium for Term Deposits TDs better Bonds better Source: RBA, farrelly’s analysis % p.a.

Pause slide – right clickResume slide – left click Previous slide - Left arrow belowNext slide - Right arrow below Close – escape key Low Term Deposit rates may be with us for a while Higher cash rates may be more than 12 months away A big difference in rates if we commit for longer 3 to 5 years generally still the best maturities

Pause slide – right clickResume slide – left click Previous slide - Left arrow belowNext slide - Right arrow below Close – escape key Valuations Source: farrelly’s

Pause slide – right clickResume slide – left click Previous slide - Left arrow belowNext slide - Right arrow below Close – escape key Valuations Source: farrelly’s Rest US

Pause slide – right clickResume slide – left click Previous slide - Left arrow belowNext slide - Right arrow below Close – escape key Summary Most markets currently offer fair value Be a little wary of US share market Continue to invest in 3-5 year term deposits

Pause slide – right clickResume slide – left click Previous slide - Left arrow belowNext slide - Right arrow below Close – escape key Please feel free to contact your Australian Unity financial adviser to discuss your investment portfolio. Or visit for free Fact Sheets For more information

Pause slide – right clickResume slide – left click Previous slide - Left arrow belowNext slide - Right arrow below Close – escape key The view expressed in this webinar are the presenter’s alone. They should not be otherwise attributed. The information in this presentation contains general advice, that is, advice which does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of that general advice in light of your personal circumstances before acting on the advice. All forecasts and estimates are based on certain assumptions which may change. If those assumptions change, our forecasts and estimates may change. Past performance of investment markets is not an indication of future performance. While every care has been taken in the preparation of this information, Australian Unity Personal Financial Services Ltd does not guarantee the accuracy or completeness of the information. Australian Unity Personal Financial Services Ltd (ABN ), AFS Licence No , of 114 Albert Road, South Melbourne VIC This webinar published 1 September Disclaimer